Guanxi: The Key to Unlocking Mexico-China Business Potential

Q: What are the main concerns of Mexican entrepreneurs when deciding to enter the Chinese market?
A: Mexican business leaders often hesitate when facing a giant like China. The primary concern stems from China’s reputation as a giant and advanced country. Mexican businesses also face a language barrier. Many in Mexico believe that English is sufficient for globalization, but as China showcases its leadership across numerous sectors, it becomes clear that we must invest in understanding these influential cultures. Learning the language is key, as it reveals the way of thinking and unique cultural structures.

Mexicans often concentrate on importing goods from China, but seldom think about what they can export to China. Mexican entrepreneurs possess the creativity and innovation to succeed in the Chinese market. They only need to recognize China as a key player in globalization.

Q: What is the China Chamber Mexico’s primary advice for entrepreneurs seeking partnerships with Chinese companies?
A: Understanding the cultural context is crucial, especially the concept of Guanxi, which refers to building close relationships and trust over time. The chamber advocates for long-term relationships, which we foster through strong networking and missions. Mexican and Chinese companies need to know each other well because the mistrust that Mexican entrepreneurs may feel toward China is mutual.

Building Guanxi is one of our main strengths since our cultures share many similarities. This closeness can make a significant difference. Businesses need to establish strong cultural and business ties and connect with those who have successfully engaged with China through networking. These people and businesses can share valuable insights on manufacturing, imports, and distribution.

The China Council for the Promotion of International Trade (CCPIT) also plays a key role in facilitating business relationships in China. Each major city in China has a local council that can help forge tighter connections. The China Chamber Mexico represents Shenzhen in Mexico, which is considered the Silicon Valley of China. The chamber focuses on establishing connections with the right organizations to create a sense of certainty in business dealings.

Q: What areas of opportunity should Mexico address to remain competitive in nearshoring?
A: Mexico's strategic geographic position next to the United States and its close ties with China make it a key player in global trade. Nearshoring, called relocalization in China, involves transferring part of the production process from China to Mexico. This approach enables us to import Chinese products for local manufacturing and label them as “Made in North America,” leveraging Chinese technology and innovation. This trend has gained traction, significantly boosting Mexico's importance in the global market.

While countries like Vietnam and Thailand are popular manufacturing hubs, Mexico's unique geographic position sets it apart. To maintain a competitive edge, it is crucial to improve infrastructure and provide incentives for Mexican companies. Embracing digitalization and adopting technology will be key to harnessing the opportunities presented by nearshoring. Alongside Brazil, Mexico is the most important location for China in Latin America.

Q: In what ways could the Mexican industry establish stronger technology transfer partnerships with Chinese firms?
A: Trade between Mexico and China exceeds US$110 billion and continues to grow, with an increasing number of registered Chinese companies in Mexico. While there were over 1,000 officially registered Chinese firms in 2022, we estimate that around 3,000 Chinese companies are now established in Mexico. This influx indicates that Mexico must adopt the technological practices that Chinese companies employ, including electronic platforms and innovative business processes.

The chamber emphasizes the importance of digitalization and transformation, which are key to enhancing Mexico-China relations. We must actively seek transformational projects in Mexico that incorporate Chinese technology and explore ways for these projects to reach the Chinese market. 

Q: How are Chinese automotive companies transforming the Mexican market?
A: Nearly 15 Chinese automotive companies operate in Mexico, including BYD, Changan, JAC Motors, Chery, Dongfeng, Yutong, and Jetour. The global automotive industry produces about 90 million cars each year, while Mexico produces over 3 million vehicles. Of these, over 100,000 are EVs. Despite tariffs and manufacturing challenges, technology transfer between countries is happening naturally and is expected to continue growing.

Many Chinese electric vehicles are making their mark in the United States. Brands like BYD demonstrate the potential for high-tech EVs to enhance user experience, with owners in China reportedly spending an additional hour in their cars due to entertainment features. 

Q: What is the composition of China Chamber Mexico’s membership? 
A: We aim to diversify the chamber to better support entrepreneurs. We are working to understand members' needs and assist them in leveraging technology and building connections with China. We collaborate with banks to facilitate yuan-Mexican peso transactions that do not involve US dollars. We support real estate companies and industrial parks located at the border or in Manufacturing, Maquiladora and Export Services Industry (IMMEX) zones. The real estate sector is important not only for manufacturing but also for agriculture, which is attracting interest from Chinese investors. We work with commercial trading companies that import and resell products from China, aiming to ensure that these products meet the quality standards associated with Chinese goods. The chamber also collaborates with partners in the pharmaceutical and medical devices sectors, which became crucial during the COVID-19 pandemic. Demand in these areas is rapidly increasing. We also work with technology and e-commerce companies, as well as telecommunications firms like China Telecom.

Logistics plays a vital role in our operations, especially for automotive parts. Mexico is a key player in the automotive parts supply chain, and companies should explore exporting these parts to China. We also provide consultancy services and legal analysis for business, and help companies find qualified staff who speak Chinese. Understanding the language is critical to navigating Chinese business practices.

Given the absence of a free trade agreement with China, we offer legal guidance to help our members navigate the landscape. We established a dispute resolution center to create guidelines for specific shipments. The next step for the chamber is to form specialized committees focused on key sectors where we see a growing need for support.

Q: What are China Chamber Mexico’s plans for 2024 and 2025?
A: Our next step is to establish specialized committees supporting our members’ respective industries. Education is also crucial for us. We collaborate with universities in Mexico to create internship programs, which also motivate students to engage with the chamber. We maintain a strong connection with the Chinese Minister of Business and Commerce Dong Wei, and we communicate regularly to foster ties and support initiatives such as visa assistance for missions to China. 

Digitalization is also a key objective. We offer an online platform for networking and promoting upcoming events and missions. We participate in major trade fairs in China, such as the Canton Fair, the China International Import Expo (CIIE), and the China International Supply Chain Expo (CICE). In 2025, we aim to bring more Mexican companies to these events.

In Mexico, we also engage in exhibitions like Expo Logística, Expo Seguridad, Intersolar, Green Expo, and China Homelife. In 2025, we will also enhance our participation in these events and expand our digital outreach efforts. We have connections with Shenzhen and Canton, and we are working to strengthen ties with Hong Kong.


The China Chamber of Commerce and Technology Mexico (China Chamber Mexico) has been promoting and facilitating business and technological exchange between both countries for 15 years, supporting bilateral trade relations and promoting investment opportunities across various sectors.